Stationary Products to Dominate Fuel Cell Market

June 17, 2014 By Leon Walker

navigantThe stationary fuel cell sector will continue to lead the fuel cell industry in the next year and beyond, according to a white paper by Navigant Research.

The stationary sector has been the leading sector for fuel cell capacity shipments since 2009 (see chart). This trend continued in 2013, with stationary capacity increasing around 22 percent over capacity shipped in 2012. The stationary fuel cell sector also represented over 70 percent of global fuel cell revenue at the end of 2013. In 2014, there are already large new orders on the books, and Navigant Research has projected a 42 percent compound annual growth rate from 2014 to 2022, according to The Fuel Cell and Hydrogen Industries: 10 Trends to Watch.

Annual revenue in the stationary fuel cell market will double to $2 billion this year from 2012’s $1 billion, according to a report from Navigant Research, Stationary Fuel Cells, released in March. Under conservative growth estimates, the industry will be shipping 6.9 GW per annum of stationary fuel cells by 2022, according to the March report.

There is continued demand, even while the stationary sector continues to experience consolidation and some company fallout, the white paper says. After buying UTC Power’s phosphoric acid fuel cell technology in 2012 and having considerable success in orders for the technology, ClearEdge declared bankruptcy in May 2014; the company is reportedly more than $100 million in debt. However, orders are still coming in for other prime power companies in the United States. The US market will also likely see a flurry of orders come in to take advantage of the current fuel cell federal tax credit, which is set to expire in 2017, the white paper says.

Other trends to watch include: fuel cells being back on the radar of the skeptical US media, investors cautiously coming off the fence on fuel cells and combined heat and power on path to surpass prime power stationary fuel cells.

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